Biti took office last month when the Movement for Democratic Change
(MDC) joined long-time President Robert Mugabe in a unity government,
following nearly a year of political turmoil.
Biti presented a revised budget to parliament, updating the one unveiled in January by Mugabe’s cabinet.
His new estimates showed that Zimbabwe’s government revenue would be
one billion dollars, down from the $1.7bn projected in the January
budget.
"This is a loss of budgeted expenditure of 43%," he told parliament.
"The task of turning around the economy becomes the toughest job of the inclusive government."
He urged Zimbabweans to accept the grim realities of the revised
budget, which will hamper government’s already limited ability to cope
with 94% unemployment, world-record hyperinflation, and nationwide food
shortages.
"Demands on the treasury are high and limitless. It is important for
Zimbabweans to take a reality check. The reality of our economic
situation is that it is grim," he said.
Biti’s budget followed through on MDC promises to pay civil servants in
foreign currencies. Bureaucrats, teachers, doctors and the military can
now expect payments in US dollars, budgeted at $299m.
He also budgeted $32m for "vulnerable groups" such as child-headed families.
Zimbabweans are surviving largely on foreign aid, with international
agencies distributing food rations to nearly seven million people – the
majority of the population.
A cholera epidemic has hit more than 91 000 people, killing more than 4
000 people, but public hospitals only opened their doors after MDC
leader Morgan Tsvangirai became prime minister last month.
Public hospitals and clinics still have little medicine or supplies,
leaving international agencies to battle the cholera epidemic.
Agence France Presse (AFP)
Post published in: News